November 13, 2014
The growth in gift card popularity is irrefutable, and this holiday season spending on tiny plastic or digital gift cards will top all previous records. According to NRF’s Gift Card Spending Survey, the average person buying gift cards will spend $172.74, up from $163 last year. Total spending is expected to reach $31.74 billion. In an October NRF survey, 62 percent of shoppers said they would like to receive a gift card, making gift cards the most requested gift item eight years in a row.
“No longer impersonal or only about convenience, gift cards have become the perfect, practical gift item for millions of holiday shoppers,” said NRF President and CEO Matthew Shay. “And, as the most requested gift item for eight years in a row, we’re sure there will be plenty of happy individuals this holiday season who can look forward to treating themselves to something shiny and new come January when retailers start to offer promotions on fresh new merchandise.”
According to the survey, shoppers will spend an average of $47.87, up from $45.16 last year. Total spending on gift cards has increased 83 percent since NRF began tracking consumers’ intentions to buy gift cards as holiday gifts in 2003.
Gift cards are a go-to gift for consumers of all ages; the survey found adults 65+ will spend the most on gift cards at an average of $204.59. Young adults between 18-24 years old will spend the least at an average of $113.75. Additionally, men plan to spend significantly more than women on gift cards ($180.81 vs. $165.09 respectively).
“These days, shoppers simply love the idea of gifting someone they care about with a little ‘free money’ in the form of a gift card. Consumers young and old want to find the best way possible to create a happy holiday experience for their loved ones, and gift cards are a great option every time.”
There are a plethora of options for shoppers when it comes to what type of card to get, and it is clear department stores, restaurants and coffee shops are among the most popular choice for gift givers. According to the survey 37.7 percent of gift card buyers will give their loved ones a gift card from a department store, and 34 percent will give their friends and family the gift of a meal at a restaurant. One in five (20.6%) will pick up coffee shop gift cards, 18.1 percent will give the gift of entertainment, such as a movie theatre gift card, and 18.9 percent will give gift cards to electronics stores.
Source: National Retail Federation
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